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A comprehensive glossary of sustainability and ESG terminology
Carbon Accounting
Carbon accounting, also known as greenhouse gas (GHG) accounting, is the process used by organizations to measure the amounts of carbon dioxide equivalents (CO2e) emitted directly and indirectly by their activities.
Carbon Credit
Carbon credits represent the removal of one tonne of carbon dioxide or an equivalent amount of a different greenhouse gas from the atmosphere. These are from verified and measured emissions reductions from certified emissions reduction or removal projects. These allow the owner to emit a specific amount of carbon dioxide or the equivalent of other GHGs.
Carbon Emissions
Carbon emissions refer primarily to the release of carbon dioxide (CO2) into the atmosphere. Carbon emissions can also include other carbon-based greenhouse gasses such as methane (CH4), but CO2 is by far the most prevalent and is often used synonymously with carbon emissions.
Carbon Markets
Carbon markets are systems through which countries, organizations, or individuals buy and sell credits for greenhouse gas (GHG) emissions, specifically carbon dioxide (CO2) and other GHG emissions measured in terms of carbon dioxide equivalents (CO2e). Each credit represents the removal of one tonne of carbon dioxide or an equivalent amount of a different greenhouse gas from the atmosphere.
Carbon Neutrality
Carbon neutrality refers to achieving a net-zero carbon footprint by balancing the amount of carbon dioxide (CO2) released into the atmosphere with an equivalent amount of CO2 removed or offset.
Corporate Sustainability Due Diligence
Corporate Sustainability Due Diligence is the practice of assessing, identifying, and managing social and environmental risks and impacts throughout a company’s operations and value chain.
Green Bonds
Green Bonds are fixed-income instruments specifically earmarked to encourage sustainability and to support climate-related or other types of special environmental projects. These bonds are typically asset-linked and backed by the issuer's balance sheet.
Greenwashing
Greenwashing is a deceptive marketing practice in which an entity promotes green-based environmental initiatives, images, or claims but actually operates in a way that is damaging to the environment, or is less green than portrayed.
Science-Based Targets
Science-Based Targets (SBTs) are specific, measurable goals set by companies to reduce their greenhouse gas emissions, aligning their efforts with the levels of decarbonization that, according to climate science, are necessary to keep global temperature increase below 1.5°C to 2°C compared to pre-industrial temperatures.
Scope 1 Emissions
Scope 1 emissions come directly from sources that are owned or controlled by the company. These include stationary or mobile combustion of fossil fuels from company-owned equipment and vehicles, emissions from industrial processes, and fugitive emissions or leaks from greenhouse gasses.
Scope 2 Emissions
Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling. Unlike Scope 1 emissions, which are direct emissions from owned or controlled sources, Scope 2 emissions occur at the facility where the energy is generated, rather than at the point of energy consumption by the reporting company.
Scope 3 Emissions
Scope 3 emissions, also known as value chain emissions, encompass all the indirect emissions that occur in a company's value chain, outside of Scope 1 and Scope 2 emissions. These emissions are the result of activities from assets not owned or controlled by the reporting organization but over which it indirectly impacts through its operations and activities.
Sustainability
Sustainability refers to business practices, systems, and activities that lead to long-term positive economic, environmental, and social development. In other words, sustainability is the ability to maintain and improve quality of life without depleting the resources required for future generations to enjoy a similar or improved standard of living.
Sustainability Reporting
Sustainability reporting is a practice where organizations disclose information about their sustainability and ESG performance to stakeholders. It is a key tool for managing impact on sustainability issues, including climate change, human rights, and corporate governance.
Sustainable Development Goals
The Sustainable Development Goals (SDGs) are a universal set of goals, targets, and indicators adopted by all 193 United Nations member states in 2015, as part of the 2030 Agenda for Sustainable Development. The SDGs were established to guide global development efforts across various dimensions of social, economic, and environmental sustainability by the year 2030.
KeslioX
KeslioX is an independent resource platform to equip companies and investors with the crucial knowledge, resources, and insights needed to navigate the complex landscape of sustainability and ESG.
Sustainability and Climate Change in the Pacific Region
The Pacific region, comprising numerous small island developing states (SIDS), faces unique and profound challenges related to sustainability and climate change. Addressing these interconnected issues is critical, not only for regional stability and development but also as a demonstration of global solidarity and effective climate action.
GEDSI Principles into Credit and Lending Processes
The integration of Gender Equality, Disability, and Social Inclusion (GEDSI) into credit and lending processes represents a transformative shift toward equitable financial systems. By embedding GEDSI principles, financial institutions can enhance accessibility, reduce systemic inequities, and foster economic empowerment across marginalized and underserved communities. This comprehensive exploration highlights the importance, strategies, and tangible benefits of adopting GEDSI principles in credit and lending practices.
Climate Change Funders: Catalyzing Global Action Toward a Sustainable Future
Climate change funders play a critical role in shaping the world’s response to environmental challenges, influencing not just what projects are financed but also how solutions are designed, implemented, and scaled. Understanding who these funders are, their strategies, and the evolving landscape of climate finance is essential to navigating the future of sustainable development.
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